Nvidia CEO Jensen Huang has once again made an urgent appeal to Washington, arguing that allowing American technology companies to compete openly in China serves the best interests of both the countries. On the tech podcast BG2, a podcast hosted by tech investors Brad Gerstner and Bill Gurley, Huang emphasized that a competitive presence in China would enable the US to “proliferate the technology around the world” and “maximise America’s economic success and geopolitical influence.”Huang also expressed hope that China would remain open to outside investment, noting Beijing’s pledges to maintain an “open market.” “What’s in the best interest of China is for foreign companies to invest in China, compete in China and for them to also have vibrant competition themselves,” he said.
China ‘nanoseconds behind’ America in chipmaking
Huang highlighted the rapid advances and robust potential of China’s chipmaking industry, cautioning that the country is “nanoseconds behind” the US. “We’ve got to go compete,” he asserted, pointing to China’s deep talent pool, hustling work culture, and intense internal competition across its provinces. He described the environment as a “vibrant, entrepreneurial, hi-tech, modern industry.”
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China-US geopolitical tensions
Nvidia’s Graphics Processing Units (GPUs) are the essential backbone for training and running artificial intelligence (AI) models, a factor that has propelled the company’s market capitalization to record highs. However, this success has been complicated by escalating geopolitical tensions, which have severely disrupted sales in China, one of the world’s largest markets.Earlier this year, the US temporarily blocked exports of the H20, a downgraded chip designed to comply with restrictions, before relenting after a 15% levy to the US government was agreed upon. In August, the White House announced that President Donald Trump and Huang had struck a deal under which Nvidia would receive export licenses in exchange for 15% of Chinese sales of the H20 going to the US government.
